0% found this document useful (0 votes)
12 views

Rate of Change

The Rate-of-Change (ROC) indicator measures the percent change in price from one period to the next by comparing the current price to the price "n" periods ago. The ROC forms an oscillator that fluctuates above and below zero as the rate of change moves from positive to negative. ROC signals include centerline crossovers, divergences, and overbought-oversold readings. Identifying overbought or oversold extremes is natural for the ROC oscillator. In calculus, the rate of change is equal to the slope of the equation, which can be calculated using the slope formula of rise over run. Examples of rate of change include the speed of a moving object, which can be calculated as the change

Uploaded by

api-150547803
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
12 views

Rate of Change

The Rate-of-Change (ROC) indicator measures the percent change in price from one period to the next by comparing the current price to the price "n" periods ago. The ROC forms an oscillator that fluctuates above and below zero as the rate of change moves from positive to negative. ROC signals include centerline crossovers, divergences, and overbought-oversold readings. Identifying overbought or oversold extremes is natural for the ROC oscillator. In calculus, the rate of change is equal to the slope of the equation, which can be calculated using the slope formula of rise over run. Examples of rate of change include the speed of a moving object, which can be calculated as the change

Uploaded by

api-150547803
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Rate of Change

Rate of Change Introduction :- The Rate-of-Change (ROC) indicator, which is also referred to as simply Momentum, is a pure momentum oscillator that measures the percent change in price from one period to the next. The ROC calculation compares the current price with the price "n" periods ago. The plot forms an oscillator that fluctuates above and below the zero line as the Rate-of-Change moves from positive to negative. As a momentum oscillator, ROC signals include centerline crossovers, divergences and overbought-oversold readings. Divergences fail to foreshadow reversals more often than not so this article will forgo a discussion on divergences. Even though centerline crossovers are prone to whipsaw, especially short-term, these crossovers can be used to identify the overall trend. Identifying overbought or oversold extremes comes natural to the Rate-of-Change oscillator. Example :- Find the slope of a line passing through the points (-4,4) and (8,-2).

Know More About :- Probability Distribution


Math.Tutorvista.com

Page No. :- 1/4

You have several choices :1. You can graph the points and "count" the vertical changes and horizontal changes to use in the formula : The rate of change in algebra is the ratio that shows the relation between the two variables in equation. In general, the coefficient of x is called as the rate of change of an equation. For example, in y=3x+4, the rate of change is 3. 3 is the coefficient of x. In this equation, the constant variable is 4. In Calculus, the rate of change of equation can easily be obtained from the slope equation. The slope of the equation is also called as rate of change of the equation. The subject of calculus had its origin mainly in the geometrical problem of determination of the gradient of a curve at a point there of resulting in the determination of the tangent at the point. This subject has also rendered possible precise formulations of a large number of physical concepts such as velocity at an instant, Acceleration at an instant, Curvature at a point, Density at a point, Specific heat at any temperature, etc, each of which appears as Local or Instantaneous Rate of Change as against the Average Rate of change. Many practical relationships involve independent and dependent quantities. Rate of Change Formula In calculus, rate of change is equal to slope of the equation. The formula for slope equation can be written as, Slope = Rise of the equationRun of the equation Slope = y2y1x2x1 Rate of change of x with respect to y is given as dxdy.

Learn More :- Standard Normal Distribution Table


Math.Tutorvista.com Page No. :- 2/4

Rate of change of y = dxdy. Speed as Rate of Change An object moving in a straight line is an example of a rate of change model. We use the 2 dimensional graph sheet to represent the path described by the point in the given time. For example, if a train travels 400 km in 5 hrs and 600 km in next 7, then the rate of change of distance with time is (600400)(75) = 2002 = 100 km/hr. Hence the speed of the train is 100 km/hr. Average Rate of Change In geometrical concepts, the term rate of change is the slope of the line joining the two points of the line. This is also called as the average rate of change

Math.Tutorvista.com

Page No. :- 4/4

ThankYouForWatching

Presentation

You might also like